A few days ago it was announced that Tesla is going to build a gigafactory in the municipality of Santa Catarina, which is located in the metropolitan area of the city of Monterrey, Nuevo León. It is estimated that the total investment will be around USD 10 billion and will generate around 40,000 direct and indirect jobs.
There is no doubt that the arrival of this plant will have a major impact on the city's economy, which in turn will be reflected in the area's real estate market. Being a large-scale project that will undoubtedly attract an entire supply ecosystem around the mega-factory, it is clear that Monterrey is going to become an important center for the generation of specialized jobs in the electrical-automotive industry.
The generation of said ecosystem will generate greater demand for medium and high level housing since a large number of highly qualified workers and executives will be looking for this type of property in areas such as Valle Poniente, Del Valle and Valle Oriente. As there is not enough supply, real estate developers will surely seek to undertake new projects to satisfy demand, so it will not be uncommon to see new vertical and horizontal multi-family projects in the aforementioned residential areas. It is important to note that the arrival of this large investment will have to be accompanied by government investment in terms of infrastructure such as access roads, electricity, water, drainage, among others. We cannot forget the water crisis that the state of Nuevo León is going through at the moment and which could be aggravated significantly with the arrival of the gigafactory due to both industrial demand and drinking water for the population.
It will be interesting to see how economic activity in Nuevo León evolves due to the entry of Tesla and how the state and federal governments contribute to making this growth sustainable and without disruption to the general well-being of the population. Without a doubt, it is a great opportunity for developers of housing and commercial spaces, as well as for the industry in general and educational institutions that will have to provide young and specialized talent to the companies that will integrate this new industry. Hopefully Mexico can consolidate this type of investment and attract more foreign capital that materializes in development and opportunities for all Mexicans.
